Cable Television in JapanEvolution to 4K and IP

Japan Cable Laboratories

ITU Workshop

The Future of TV for the Americas

26 November 2018

Bogota, Colombia

RetransmissionTerrestrial TV and

Broadcasting Satellite (BS)Cable Television

ChannelsNews, sports, movies, etc

Community ChannelLocal programming by

Cable TV stations

Internet &IP Telephony

Video On Demand

TV Station

Cable TV Station

Fiscal year 2017Number of Commercial Operators: 291Total Commercial Revenues: 503.1 billion JYen

⚫ The first Japanese cable television station began operation in 1955, two years afterJapan Broadcasting Corporation (NHK) started television broadcasting, to retransmitNHK programs to a spring resort 150 kilometers north of Tokyo.

⚫ As of March 2018, cable television reaches 52.6% of Japanese households, with31.2 million subscribers (households).

Japanese Cable Television

2

※ 平成22年度までの統計値は、自主放送を行う旧許可施設及び旧電気通信役務利用放送法 の登録を受けた者の設備（旧有線役務利用放送設備）の加入世帯数、普及率の推移。

：ＲＦ方式

：ＩＰマルチキャスト方式

：普及率：普及率（ＲＦのみ）

〔10K households〕 〔Penetration %〕

789

9431044

1300

1514

16541788

1913

20612194

2301

24712602 2656 2707

2767 2817 2852 2885 2930

10

1723

46

70

90109 98

97 101 96 9491

38

40.342.3

44

46.748.8

49.6 50 49.8 50.4 50.6 50.7 51

17

2021.8

26.8

31.133.2

35.9

38.2

40.6

42.944.9

48

50.451.6 51.8 51.5 52.2 52.3 52.3 52.6

0

10

20

30

40

50

0

250

500

750

1000

1250

1500

1750

2000

2250

2500

2750

3000

3250

3500

10年度11年度12年度13年度14年度15年度16年度17年度18年度19年度20年度21年度22年度23年度24年度25年度26年度27年度28年度29年度

Yearly Increase of Cable Television Subscribers

1998 2000 2002 2004 2006 2008 2010 2013 2015 2017

RFIP MulticastPenetrationPenetration (RF)

×▲

(Source: MIC)3

Fiscal year(Mar 2018)

4,257 4,807 5,061

5,812 6,534

7,101 7,399

8,320 9,088 9,238

10,358 10,567

12,520 12,853

3,076 3,330 3,533 3,850 4,050 4,746 4,667

5,134 5,437 5,177 4,930 5,030 4,975 5,003 5,031

2,956 3,057 3,244 3,467 3,7624,364 4,309

4,6234,883 4,757 4,474 4,607 4,468 4,468 4,492

120 272 288 383 288 382 358 511 555 420 456 423 507 535 539

0

2,000

4,000

6,000

8,000

10,000

12,000

Ｈ14… Ｈ15… Ｈ16… Ｈ17… Ｈ18… Ｈ19… Ｈ20… Ｈ21… Ｈ22… Ｈ23… Ｈ24… Ｈ25… Ｈ26… Ｈ27… Ｈ28…

100 Million JYen

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(Fiscal)

Yearly Increase of Cable Television Revenue

Total revenue(incl. telecom revenue )

Cable TV revenueOperating costsOperating revenue

(Source: MIC)4

13,538

3,964 3,980 4,001 4,022 4,025 4,055 4,073 4,104 4,149 4,185 4,178 4,205 4,230 4,236 4,260 4,279

2,565 2,593 2,630 2,656 2,699 2,724 2,752 2,782 2,829 2,862 2,895 2,925 2,963 2,985 3,007 3,030

424 407 392

375 358 343 332 320 310 299 288 251 241 233 224 215

623 624 631

643 661 665 671 673 679 682 686 685 689 690 691 689

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014.6 2014.9 2014.12 2015.3 2015.6 2015.9 2015.12 2016.3 2016.6 2016.9 2016.12 2017.3 2017.6 2017.9 2017.12 2018.3

Fixed Broadband FTTH DSL CATV internet

（10k subscribers）

(Source: MIC)

Broadband Services Subscribers

5

4K

6

Overview of 4K/8K Services in Japan

2014 2015 2016 2017 2018 2019 2020

Terrestrial

BroadcastingSatellite 110°E

Commun.Satellite 110°E

CS124°/128°

NTT PlalaIP VoD/Linear

③

AcTVilaIP VoD

Cable TV 4K

Cable TV 4KIP VOD

Cable TV 4KRF VOD

Research

Experimental

４K/8K (ch.17)

Sky Perfect TV 4K (Commercial Service)

March 2015

Oct 2014

4K AcTVila

Milplus 4K

May 2015

Dec 2014

Apr 2016

Bro

ad

ca

ste

rs

Te

lco

Ca

ble

TV

Overview of 4K/8K Services in Japan

J:COM On Demand

Cable 4K (IP)

Experimental ４K（JCSAT-110A LHCP)

Commercial 4K(LHCP)

Commercial 4K8K(RHCP & LHCP)

Cable 4K (RF)

BS ch.17 Retransmission

7

Hikari TV 4K IP-VOD 4K IP-Linear

Aug 2016

Apr 2017

Dec

2018

Dec 2015

Apr 2016

Mar 2017 Dec

2018

: Japan Cable and Telecommunications Association

Nov 2015

RHCP:Right-Hand Circular Polarization

LHCP:Left-Hand Circular Polarization

: The Association for Promotion of Advanced Broadcasting Services

4K8K Satellite Retransmission

Advanced Cable

Shipment of 4K TV in Japan

8

4K TV shipped (Cumulative)

% of household with 4K TV

(of 52 mil. household)

Source: Japan Electronics and Information Technology Industries Association (JEITA) (k units)

Retransmission of 4K8K Satellite service

9

Broadcasters

⚫ Japanese Broadcasting Satellite (BS) will start carrying 4K and 8K channels, starting December 1, 2018

⚫ Many of those programming will be retransmitted by cable operators throughout Japan

4K TV

FTTH

HFC

Cable HE V-ONU

4K

8K

*4K STB

Cable Access Lines

HDMI

E/O

256QAM

256QAM

64QAM

⚫ This “retransmission” will benefit cable operators because:-

➢ 4 million 4K panel TV sets have been sold in Japan, but they cannot receive this 4K DTH services which use new technology

➢ Consumers with such 4K panel TVs will have to use either a new satellite receiver, or a new cable STB

*8K STB not available yet

4K/8K

JLabs 3rd Generation STB

3rd Gen STB

4K UHDTV

Remote Viewing

on the road

MirroringPersonalized PortalEPGRemote control

Multi-device

Services for and in collaboration with tablets and smartphones

10

11

4K services supported by 3rd Gen. STB

RF/IP Service CAS/DRM Multiplexing HDR

RF

Cable 4K Multi2 (64 bit) MPEG-2 TS

Advanced Cable ACAS (AES128*) MPEG-2 TS HLG**

Satellite 4KRe-transmission

ACAS (AES128*)MMT: MPEG

Media Transport (ISO/IEC 23008)

HLG**

IP

Cable 4K IP Marlin (AES128) MPEG-2 TS

Video on Demand

Multiple DRM based on CENC (CommonEncryption Scheme)(ITU-T J.1005/1006)

MPEG-2 TS

* In compliance with MovieLabs (United States) specification forEnhanced Content Protection (ECP)

**Hybrid Log Gamma (ITU-R BT.2100)

Migration to IP

12

13

23012471

2602 2656 2707 2767 2817 2852 2885 293046

7090 109 98 97 101 96 94 91

0

250

500

750

1000

1250

1500

1750

2000

2250

2500

2750

3000

3250

3500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IP Multicast services yet to take off in Japan, especially in cable TV.

IP Multicast in Japan

(Source: MIC Japan 2017)

⚫ Most of the 1 million IP multicast subscribers above are actually belong to Telco (NTT and KDDI).

⚫ Currently only a few cable operators provide IP multicast ⚫ IP retransmission of 4K/8K satellite services may change this

situation

RF IP Multicast〔10k households〕

IPTV vs. Internet TV

⚫ IPTV– Transmitted over quality managed IP network by means of

• Priority control, or

• Fixed bandwidth assignment

– Video and audio quality equivalent to RF Broadcasting

– Special case of IPTV which makes use of IP multicast is called “IP Broadcasting”

⚫ Internet TV– Transmitted over open internet (best effort network)

– Video and audio quality subject to network conditions such as congestion

– In most cases, unicast is used

14

In Japan, IPTV and Internet TV is not the same...

Classification of Broadcasting over IP

ManagedIP

Network(Quality

equivalent to RF broadcast)

Retransmission

Linear Services Non-Linear Services(such as VOD)

OpenInternet(Best Effort)

Cable channels

IPTV

Hikari TV(NTT plala)

Hikari TV

au Hikari(KDDI)

Cable 4K IP

Hikari TV video

Internet TV

NHK World TVDAZN

Abema TV

Milplus

Netflix Amazon

Hulu Youtube

Netflix Amazon

TVerHikari TV

DTV & Satellite

IP Broadcasting

NOD (NHK)

(Definition by Japanese Ministry) 15

Cable services

Source: MIC committee paper (http://www.soumu.go.jp/main_content/000534315.pdf)

⚫ People who watch IP video in addition to TV programs spend more time doing so than those who just watch TV programs

⚫ However, the former spend 34 minutes less to watch TV programs than the latter

Those watching Internet TV on TV sets spend less hours watching ordinary TV programs

16

People who watch both TV and Video People who watch TV only

97.9

128.9

42.8

45.716.81.8 3.9

14.8

11.86.7

15.4

6.1

MINUTES SPENT ON WATCHING TV AND VIDEOUSING TV SETS

Game

DVD/Blue Ray

YouTube & like

Free video

TVOD

SVOD

Recorded TV

On-air TV

34 min

0

100

200

(min/day)

977

1,2491,502

1,675

1,853

2,280

2,580

2,852

160

259370

400

457

703

874

1,016

510545

585625

665

715750

785

29

117

174217

238 303337

377

113 128 143 158 173205

226 243

50 65 75100

125 139 157 176115135

155175

195215

235255

0

500

1,000

1,500

2,000

2,500

3,000

0

200

400

600

800

1,000

1,200

2015

2016

2017

2018

2019

2020

2021

2022

（万契約）（万契約）

合計

Amazon Prime Video

dTV

Netflix

Hulu

TVer

U-Next

Increase of OTT Subscribers in Japan

⚫ The increasing number of OTT subscribers will affect TV viewing on cable television

17

Estimated number of OTT Subscribers in Japan

Source）Ovum WTVIS ( as of November 2017) 17

Unit of 10k Unit of 10k

Total OTT

Increase of broadband traffic per subscribers

（Source: MIC Japan) 18

10.6 12.1 12.7 13.3 14.6 15.5 16.5 17.4 19.5 21.6 24.8 26.3 22.2 20.9 20.1 18.3 18.6 18.8 21.9 23.2 25.0 25.5 28.4 28.234.6 37.8

46.637.8

43.0

12.1 13.9 16.9 17.5 19.0 21.0 23.2 25.0 27.2 31.0 35.6 37.9 37.0 39.9 44.0 45.8 48.953.8

64.772.0

80.0

97.6

119.9

145.7

179.5

212.9

247.7

276.3

316.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0M

ay-0

4

Oct

-04

Mar

-05

Au

g-0

5

Jan

-06

Jun

-06

No

v-0

6

Ap

r-0

7

Sep

-07

Feb

-08

Jul-

08

Dec

-08

May

-09

Oct

-09

Mar

-10

Au

g-1

0

Jan

-11

Jun

-11

No

v-1

1

Ap

r-1

2

Sep

-12

Feb

-13

Jul-

13

Dec

-13

May

-14

Oct

-14

Mar

-15

Au

g-1

5

Jan

-16

Jun

-16

No

v-1

6

Ap

r-1

7

Sep

-17

Feb

-18

(kbps)

+28%

Download traffic

Upload traffic

(3.4GB per day)

Partnership with OTT providers

19

OTT is doing some harm to cable operators, but they can co-operate with OTT in various ways such as:

➢ Reselling

➢ Incorporating OTT channels into cable channels(Unified EPG)

➢ Charging cable subscribers use of OTT services on behalf of OTT providers

Thank you very much